Leveraging the SA G20 Presidency to Scale-Up the Compact with Africa

The G20 Compact with Africa (CwA), initiated in 2017, aims to boost private investment and infrastructure in Africa through reform agendas in macroeconomic, business, and financing frameworks. While CwA countries often show stronger growth and trade performance, a direct causal link to investment flows remains unproven, and foreign direct investment to Africa rose only by $4.5 billion between 2017 and 2023. To enhance the initiative, the author recommends that South Africa's G20 presidency facilitate the admission of interested countries such as Angola, Kenya, and Zambia, and elevate the African Advisory Group (AAG) to a permanent G20 working group. Additionally, the note suggests spotlighting critical minerals and energy investment, improving investment grades to reduce Africa's $75 billion risk premium, and implementing 'country platforms' to increase private sector engagement in reform agendas.

• The G20 Compact with Africa (CwA) focuses on three reform blocks to improve investment and economic growth: the macroeconomic framework (stability, debt, and resource mobilisation), the business framework (regulations and investor protection), and the financing framework (reducing costs and risks).
• Member countries have implemented diverse reforms, including state-owned enterprise reforms in Egypt, Ethiopia, and Morocco; land access reforms in Benin, Burkina Faso, Ghana, Senegal, Togo, and Tunisia; and renewable energy promotions in Burkina Faso, Egypt, Ghana, Morocco, and Tunisia.
• While CwA countries often exhibit stronger growth and trade performance, the impact on investment flows is uncertain; foreign direct investment to Africa increased by only $4.5 billion from $40.4 billion in 2017 to $44.9 billion in 2023.
• South Africa can expand the CwA by facilitating the admission of interested African nations, including Angola, Comoros, Kenya, Mauritania, Mauritius, Namibia, the Republic of Congo, and Zambia.
• The author proposes elevating the African Advisory Group (AAG) to a permanent G20 working group to increase political buy-in and ensure commitments are included in Development Working Group accountability reports.
• Strategic focus areas for investment and cooperation should include the extractive and critical minerals sectors, as well as addressing Africa's risk premium, which is estimated to cost the continent $75 billion.
• The implementation of 'country platforms'—similar to reform delivery units in Tunisia, Egypt, and Togo—is recommended to address the lack of domestic and international private sector engagement in setting reform agendas.

APA

Rubidge, L. (2025). Leveraging the SA G20 Presidency to Scale-Up the Compact with Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2025/03/Policy-Note_13_G20CompactwithAfrica_final.pdf

Chicago

Rubidge, Laura. Leveraging the SA G20 Presidency to Scale-Up the Compact with Africa. South African Institute of International Affairs, 2025. https://saiia.org.za/wp-content/uploads/2025/03/Policy-Note_13_G20CompactwithAfrica_final.pdf.

Wikipedia

{{cite report |last1=Rubidge |first1=Laura |title=Leveraging the SA G20 Presidency to Scale-Up the Compact with Africa |publisher=South African Institute of International Affairs |date=13 March 2025 |url=https://saiia.org.za/wp-content/uploads/2025/03/Policy-Note_13_G20CompactwithAfrica_final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rubidge2025leveraging, author = {Rubidge, Laura}, title = {{Leveraging the SA G20 Presidency to Scale-Up the Compact with Africa}}, institution = {South African Institute of International Affairs}, year = {2025}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2025/03/Policy-Note_13_G20CompactwithAfrica_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }